SEGMENT REPORTING

The Corporation manages its operations through two primary business segments: core banking and WMG. The core banking segment provides revenues by attracting deposits from the general public and using such funds to originate consumer, commercial, commercial real estate, and residential mortgage loans, primarily in the Corporation’s local markets, and to invest in securities. The WMG services segment provides revenues by providing trust and investment advisory services to clients.

Accounting policies for the segments are the same as those described in Note 1 of the Corporation’s 2017 Annual Report on Form 10-K, which was filed with the SEC on March 8, 2018. Summarized financial information concerning the Corporation’s reportable segments and the reconciliation to the Corporation’s consolidated results are shown in the following table. Income taxes are allocated based on the separate taxable income of each entity and indirect overhead expenses are allocated based on reasonable and equitable allocations applicable to the reportable segment. The Holding Company, CFS, and CRM column below includes amounts to eliminate transactions between segments (in thousands).



	Three months ended September 30, 2018
	Core Banking		WMG		Holding Company, CFS, and CRM			Consolidated Totals
Interest and dividend income	$	16,122	$	—	$	14		$	16,136
Interest expense	1,057		—		—			1,057
Net interest income	15,065		—		14			15,079
Provision for loan losses	300		—		—			300
Net interest income after provision for loan losses	14,765		—		14			14,779
Other non-interest income	4,987		2,406		(12		)	7,381
Other non-interest expenses	11,871		1,307		250			13,428
Income (loss) before income tax expense (benefit)	7,881		1,099		(248		)	8,732
Income tax expense (benefit)	1,555		281		(34		)	1,802
Segment net income (loss)	$	6,326	$	818	$	(214	)	$	6,930



	Three months ended September 30, 2017
	Core Banking		WMG		Holding Company, CFS, and CRM			Consolidated Totals
Interest and dividend income	$	15,487	$	—	$	10		$	15,497
Interest expense	734		—		—			734
Net interest income	14,753		—		10			14,763
Provision for loan losses	1,289		—		—			1,289
Net interest income after provision for loan losses	13,464		—		10			13,474
Other non-interest income	2,989		2,147		30			5,166
Other non-interest expenses	11,651		1,370		255			13,276
Income (loss) before income tax expense (benefit)	4,802		777		(215		)	5,364
Income tax expense (benefit)	1,457		295		(42		)	1,710
Segment net income (loss)	$	3,345	$	482	$	(173	)	$	3,654



	Nine months ended September 30, 2018
	Core Banking		WMG		Holding Company, CFS, and CRM			Consolidated Totals
Interest and dividend income	$	47,645	$	—	$	29		$	47,674
Interest expense	2,678		—		—			2,678
Net interest income	44,967		—		29			44,996
Provision for loan losses	3,371		—		—			3,371
Net interest income after provision for loan losses	41,596		—		29			41,625
Other non-interest income	10,992		7,095		94			18,181
Legal settlements	989		—		—			989
Other non-interest expenses	36,300		4,414		858			41,572
Income (loss) before income tax expense (benefit)	15,299		2,681		(735		)	17,245
Income tax expense (benefit)	2,791		684		(126		)	3,349
Segment net income (loss)	$	12,508	$	1,997	$	(609	)	$	13,896

Segment assets	$	1,740,311	$	3,800	$	9,753		$	1,753,864



	Nine months ended September 30, 2017
	Core Banking		WMG		Holding Company, CFS, and CRM			Consolidated Totals
Interest and dividend income	$	44,478	$	—	$	17		$	44,495
Interest expense	2,288		—		—			2,288
Net interest income	42,190		—		17			42,207
Provision for loan losses	2,750		—		—			2,750
Net interest income after provision for loan losses	39,440		—		17			39,457
Other non-interest income	8,228		6,525		282			15,035
Legal accruals and settlements	850		—		—			850
Other non-interest expenses	34,795		4,142		866			39,803
Income (loss) before income tax expense (benefit)	12,023		2,383		(567		)	13,839
Income tax expense (benefit)	3,523		904		(177		)	4,250
Segment net income (loss)	$	8,500	$	1,479	$	(390	)	$	9,589

Segment assets	$	1,721,571	$	4,112	$	5,999		$	1,731,682